COMPANY NEWS; SEARS RESTATING FOURTH-QUARTER EARNINGS AFTER ERROR

Sears, Roebuck & Company said yesterday it would restate its fourth-quarter earnings because of an error in the way it accounted for leasing transactions. Sears said that it expected to reduce its fourth-quarter earnings by 5 to 10 cents a share after an internal review and advice from outside auditors. It reported a profit of $1.76 a share on Jan. 27. Sears, based in Hoffman Estates, Ill., agreed to be acquired by the Kmart Holding Corporation, based in Troy, Mich., in a deal that is expected to close in early March.

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A version of this article appears in print on February 16, 2005, on Page C00004 of the National edition with the headline: COMPANY NEWS; SEARS RESTATING FOURTH-QUARTER EARNINGS AFTER ERROR. Order Reprints|Today's Paper|Subscribe